CMP: INR 53. Market Cap: Rs 65Crs, PE: 2.6, Div Yield: 2.3%, Book Value: 227
Trailing Twelve Months (TTM)
Revenue: Rs1172Crs
Net Profit: Rs 25Cr
Dec QTR:
Revenue: Rs 362.09Crs
NP: Rs 6.26Crs
Foreign holding 10.45%,
Non Prom Corp 4.26%.
Public 32% i.e. Rs 21Crs
Also in public category, more than 1%:
Bessemer Venture Partners Trust: 8.96% (click here to know more about BVP investments: http://www.bvp.com/portfolio). They acquired a long back and if I remember it correctly it was close to Rs400 per share.
Ashish Dhawan: 2.00%
So remaining from public category is Public 21% i.e. ~Rs 14Crs
Niteen S Dharmawat
IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that I consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above. I sincerely request you to do your homework before you take any position whatsoever. I, my relatives or friends may have/have positions in the stocks discussed here.
5 comments:
I received few comments regarding Sunil HiTech. PSB my clarification mail.
Cash From Operation (CFO) or Operating Cashflow (OCF) was negative only in 2012 out of last 4 years. I understand that they have debt but they have not defaulted on any of their payments, the promoters have not pleged their stakes, they are having decent cash flows.
Also we should see the complete competitive landscape before arriving at our conclusion. In the project maintenance/services for power sector the companies are in shambles. It will be worth checking about Hindustan Dorr Oliver Ltd, Shriram EPC Ltd, Technofab Engineering and McNally Bharat Engineering Company Ltd on all the parameters applicable to fundamental analysis. These are competitors of Sunil HiTech.
Compared to them the performance of Sunil HiTech is nothing less than remarkable. If someone is telling me that power sector is finished in India for forever or if someone is telling me that the power plant will never be put in India going forward then I can agree that these companies which are in project maintenance/services are not worth even a drop of a water. However, if we need power then these companies will be required. If I have to take a contrarion view on the sector then Sunil HiTech is one such opportunity.
I am not recommending to buy this stock at Rs415 per share (market cap INR508Crs). This was the peak price of the stock sometime in Jan 2008. The Bessemer Venture Partners (one of the best PE funds in the world) made an investment at Rs 350 per share (market cap INR429Crs). If you checkFY2009, which was close to its peak valuation, the revenue in that year was INR 600 Crs, NP was INR 10Crs and CFO was (-)18Crs. As of FY2013, the revenue is INR 1100 Crs, NP INR 28Crs and CFO is +30 Crs. However, despite all these positives the market cap is just 13% of its peak value i.e. now at ard INR63Crs with CMP 53.
However, it does not mean that all those stocks trading at 13% of the value will recover/gain glory. But if we believe that the services/products of this company will be required by the market and secondly if its competitors will have a questions on their survival then Sunil HiTech is nothing but a value buy. By the way, Bessemer Venture Partners (BVP) came on board of Sunil Hitech in 2008 (Devesh Nandan Garg ) and if they had smelled a rate they would not have been holding their stakes till date.
Views invited.
Cheers,
Niteen S Dharmawat
Discussed Sunil Hitech about a month ago at 53. Today touched 74.45. A cool 40% return.
I booked some profits in the counter.
Regards,
Niteen S Dharmawat
Discussed Sunil Hitech about two months ago at 53. Today crossed 87. A cool 64% return in two months.
Disc.: Holding the remaining quantity.
- Good QoQ growth. Overall good numbers considering the stress in the sector.
- Company maintained Rs1.2 dividend per share.
It was discussed at Rs 53 about 3 months ago and also mentioned 2 weeks ago at Rs 75 that it is undervalued. The stock touched today Rs 125 i.e. 135% returns in 3 months time.
See the results:
http://www.bseindia.com/xml-data/corpfiling/AttachLive/Sunil_Hitech_Engineers_Ltd_290514_Rst.pdf
Disc.: holding the stock.
Cheers,
Niteen S Dharmawat
Twitter: @niteen_india
Facebook: https://www.facebook.com/dharmawat
slideshare: www.slideshare.net/ndharmawat/
Booked profits in Sunil HiTech today. It was bought about 3.5 months ago at Rs53 and today crossed 148. A profit of 180%. The run up is very sharp.
Cheers,
Niteen S Dharmawat
Blog: http://dharmawat.blogspot.com/
Twitter: @niteen_india
Facebook: https://www.facebook.com/dharmawat
slideshare: www.slideshare.net/ndharmawat/
Linkedin: in.linkedin.com/in/dharmawat/
Post a Comment